The messengers returned to the Red camp with news that the Green army would deploy around their border, when they were in place a fire arrow would signal the beginning of the battle. But the Red had taken for granted that the Blue would play defense, but this was not so. The general of the Blue marched his soldiers forward until they came upon the Red army, with no warning they set upon the Red gnomes who were grossly outnumbered and under armed and quickly almost a third of their number were killed. High general Liledoff called a retreat and the Red ran, abandoning any semblance of discipline or proper military formation they fled, on gnorse back or on foot. The Blue did not follow, the general's theory being that fear was just as powerful as steel and blasting spears, this would lead to his downfall. The general's name was Krakda, a name which meant 'coward' in old gnomish speak, he was only a general because he was well connected and his father was the king's adviser, it was a stroke of luck for the Blue that he was a capable commander if not the smartest. Krakda served under prince Drogohem, the son of the king, and was not thrilled by his position because, in his opinion, the prince had no right to command the troops, he was only high general because of his father. General Krakda was not missed.

When Liledoff called retreat he was using a code word, retreat was a special plan Liledoff had devised to win a losing battle. Every remaining soldier would run far away and then curve around behind the enemy while they were regrouping and celebrating. The Red archers would then fire on the backs while the Cloak and the Dagger struck from the sides, during the confusion the main Red troops would charge and dispatch the rest of the army. The plan was carried to perfection and the advance party of the Blues, including general Krakda, were killed.